SPAC investors should expect June to play out similar to how May ended -- light on-going S-1, IPO, and deal activity; pre-deal SPACs at a discount; limited IPO and deal pops; and heavy downward pressure on de-SPACs. But, the good news is that the June SPAC market is healthier than February/March's "peak SPAC" market.
The current negative narrative around SPACs could finally change this month though as the media loses interest in the old, "bash SPACs" take and sees more investors taking advantage of the yield+optionality play. SPAC true believers know that the $10 backstop of redemptions provides downside protection that isn't available elsewhere in equities, yet still enables them capture the large equity upside.
June Merger Madness with 21 Deal Votes in 30 Days
The common narrative is that all SPACs will underperform in their de-SPAC period (though we continue to suggest otherwise). However, this month will likely challenge that belief as many are starting much closer to NAV than the high flyers from a few months ago and investors have recently seen a number of strong performers like PLBY (+246%), NUVB (+39%), GENI (+26%), ETWO (+23%), LEV (+18%), SKIN (+12%), and BLDE (+11%).
June's SPAC deal votes:
Jun 02 | $ 14.51 | JWS - Jaws Acquisition Corp --> Cano Health, LLC
Jun 03 | $ 10.71 | TSIA - TS Innovation Acquisitions Corp --> Latch, Inc.
Jun 03 | $ 13.23 | JIH - Juniper Industrial Holdings, Inc. --> Janus International Group, LLC
Jun 04 | $ 10.08 | GIX - GigCapital2, Inc. --> Cloudbreak Health, LLC
Jun 04 | $ 12.85 | DFHT - Deerfield Healthcare Technology Acquisitions Corp. --> CareMax Medical Group, LLC
Jun 07 | $ 13.13 | FSRV - FinServ Acquisition Corp --> Katapult Inc.
Jun 08 | $ 10.36 | ARYA - Arya Sciences Acquisition Corp III --> Nautilus Biotechnology, Inc.
Jun 09 | $ 10.26 | CAPA - HighCape Capital Acquisition Corp --> Quantum-Si
Jun 09 | $ 10.10 | THBR - Thunder Bridge Acquisition II, Ltd --> Indie Semiconductor
Jun 10 | $ 10.08 | CCX - Churchill Capital Corp II --> Software Luxembourg Holding S.A
Jun 10 | $ 9.99 | VGAC - VG Acquisition Corp --> 23andMe, Inc.
Jun 10 | $ 16.30 | SSPK - Silver Spike Acquisition Corp. --> WM Holding Company, LLC
Jun 11 | $ 18.15 | ACTC - ArcLight Clean Transition Corp --> Proterra Inc
Jun 15 | $ 9.98 | FAII - Fortress Value Acquisition Corp. II --> ATI Physical Therapy
Jun 16 | $ 10.12 | CRSA - Crescent Acquisition Corp --> LiveVox TopCo, LLC
Jun 17 | $ 9.99 | ACAC - Acies Acquisition Corp --> PlayStudios, Inc.
Jun 22 | $ 12.66 | FTIV - FinTech Acquisition Corp. IV --> Perella Weinberg Partners LLC
Jun 22 | $ 10.33 | TBA - Thoma Bravo Advantage --> ironSource
Jun 23 | $ 9.96 | AACQ - Artius Acquisition Inc. --> Origin Materials
Jun 24 | $ 10.04 | FRX - Forest Road Acquisition Corp --> Beachbody, LLC
Jun 29 | $ 11.08 | CLII - Climate Change Crisis Real Impact I Acquisition Corp --> EVgo
Don't Expect Deal Pop on Announcements in June
For any new deal announcements, SPAC investors shouldn't expect much, if any pop. May's deal announcements mostly all fell flat and are currently trading below NAV. This has as much to do with current market dynamics -- waning retail interest, oversupply, and some limits on institutional investment pre-deal -- as it does with the deal specifics. Though, investors will hope to see improved deal valuations that they can get more excited about as well.
SPAC Deals Announced in May
May 28 | $ 9.80 | VOSO - Virtuoso Acquisition Corp. --> Wejo
May 27 | $ 9.82 | LWAC - Locust Walk Acquisition Corp. --> EFFECTOR THERAPEUTICS, INC.
May 27 | $ 9.88 | PACX - Pioneer Merger Corp. --> Acorns Grow Inc
May 26 | $ 9.82 | DCRN - Decarbonization Plus Acquisition Corporation II --> Tritium
May 25 | $ 9.89 | PTK - PTK Acquisition Corp. --> Valens Semiconductor
May 25 | $ 9.92 | FORE - Foresight Acquisition Corp. --> P3 Health Partners
May 24 | $ 9.88 | LEGO - LEGATO MERGER CORP. --> Algoma Steel
May 20 | $ 9.82 | XPOA - DPCM Capital Inc --> Jam City
May 17 | $ 9.89 | SCVX - SCVX Corporation --> Bright Machines
May 17 | $ 9.94 | SGAM - Seaport Global Acquisition Corp --> Redbox
May 17 | $ 10.13 | ZGYH - Yunhong International --> Giga Energy Inc.
May 12 | $ 9.86 | CENH - Centricus Acquisition Corp. --> Arqit Limited
May 12 | $ 9.85 | SWBK - Switchback II Corporation --> Bird Rides, Inc.
May 11 | $ 9.87 | SRNG - Soaring Eagle Acquisition Corp. --> Ginkgo
May 11 | $ 9.86 | AURC - Aurora Acquisition Corp. --> Better
May 10 | $ 9.87 | STPC - Star Peak Corp II --> Benson Hill, Inc.
May 10 | $ 9.96 | LIVK - LIV Capital Acquisition Corp. --> AgileThought
May 10 | $ 9.88 | HCIC - Hennessy Capital Investment Corp. V --> Plus
May 10 | $ 9.88 | AUS - Austerlitz Acquisition Corporation I --> Wynn Interactive
May 07 | $ 9.90 | STWO - ACON S2 Acquisition Corp --> ESS TECHNOLOGY
May 07 | $ 10.02 | LSAQ - LIFE SCI ACQ II --> Science 37
May 07 | $ 9.90 | LOKB - Live Oak Acquisition Corp. II --> Navitas Semiconductor
May 06 | $ 9.91 | AMHC - Amplitude Healthcare Acquisition Corporation --> Jasper Therapeutics
May 03 | $ 9.85 | MAAC - Montes Archimedes Acquisition Corp --> Roivant Sciences
20 Discounted SPACs
-4.00% | GGMC - Glenfarne Merger Corp. (Pre-Deal)
-3.90% | MDH - MDH Acquisition Corp. (Pre-Deal)
-3.90% | EJFA - EJF Acquisition Corp (Pre-Deal)
-3.90% | ITHX - ITHAX Acquisition Corp. (Pre-Deal)
-3.80% | SWET - Athlon Acquisition Corp. (Pre-Deal)
-3.80% | GXII - GX Acquisition Corp. II (Pre-Deal)
-3.80% | JCIC - Jack Creek Investment Corp. (Pre-Deal)
-3.70% | BITE - Bite Acquisition Corp. (Pre-Deal)
-3.70% | ITQ - Itiquira Acquisition Corp. (Pre-Deal)
-3.70% | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-3.70% | KSIC - Kadem Sustainable Impact Corporation (Pre-Deal)
-3.70% | RCLF - Rosecliff Acquisition Corp I (Pre-Deal)
-3.60% | EVOJ - Evo Acquisition Corp. (Pre-Deal)
-3.60% | IGNY - Ignyte Acquisition Corp. (Pre-Deal)
-3.60% | FINM - Marlin Technology Corp (Pre-Deal)
-3.60% | JOFF - JOFF Fintech Acquisition Corp (Pre-Deal)
-3.60% | KLAQ - KL Acquisition Corp (Pre-Deal)
-3.60% | SLCR - Silver Crest Acquisition Corporation (Pre-Deal)
-3.60% | NBST - Newbury Street Acquisition Corporation (Pre-Deal)
-3.60% | OEPW - One Equity Partners Open Water I Corp. (Pre-Deal)
Friday's Biggest Decliners
-4.86% ~ $ 14.10 | GHVI - Gores Holdings VI Inc (Announced)
-4.36% ~ $ 10.30 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
-2.84% ~ $ 9.92 | FTCPA - FTAC Parnassus Acquisition Corp. (Pre-Deal)
-2.54% ~ $ 12.66 | CMLF - CM Life Sciences Inc (Announced)
-2.33% ~ $ 9.65 | AFAQ - AF Acquisition Corp. (Pre-Deal)
-2.24% ~ $ 9.61 | EJFA - EJF Acquisition Corp (Pre-Deal)
-2.11% ~ $ 9.75 | GNAC - GROUP NINE ACQUISITION CORP. (Pre-Deal)
-1.96% ~ $ 10.50 | SRAC - Stable Road Acquisition Corp. (Announced)
-1.86% ~ $ 10.55 | LCY - Landcadia Holdings III Inc (Announced)
-1.67% ~ $ 9.70 | MTAC - MedTech Acquisition Corporation (Pre-Deal)
-1.62% ~ $ 9.69 | SPKB - Silver Spike Acquisition Corp II (Pre-Deal)
-1.57% ~ $ 10.00 | PACE - TPG Pace Tech Opportunities Corp (Announced)
-1.43% ~ $ 9.64 | SCOB - ScION Tech Growth II (Pre-Deal)
-1.32% ~ $ 9.73 | IPVA - InterPrivate II Acquisition Corp. (Pre-Deal)
-1.31% ~ $ 9.80 | CLAA - Colonnade Acquisition Corp. II (Pre-Deal)
-1.30% ~ $ 9.85 | TETC - Tech and Energy Transition Corporation (Pre-Deal)
-1.28% ~ $ 10.02 | LSAQ - LIFE SCI ACQ II (Announced)
-1.19% ~ $ 10.75 | THCB - Tuscan Holdings Corp. (Announced)
-1.19% ~ $ 10.00 | CHAQ - Chardan Healthcare Acquisition 2 Corp. (Announced)
-1.05% ~ $ 10.32 | RACA - Therapeutics Acquisition Corp (Announced)
More from Boardroom Alpha
More from Boardroom Alpha For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)